Bank of America Publishes Report on Hormel Foods

Bank of America writes about Hormel Foods (NYSE: HRL), “Hormel Foods reported 4Q EPS of $0.43, 1c above consensus estimates of $0.42. Sales increased 2.0% year-over-year to $2.1B, as price/mix offset a 7.0% volume decline. 4Q operating profit margin was down 60bps to 8.5%, as pricing actions taken during the quarter did not fully offset commodity price inflation. Within HRL's largest segment, Refrigerated Foods (52% of 4Q sales; 36% operating profit), 4Q operating margin decreased 150bps to 6.4% owing primarily to elevated commodity costs.”

HRL closed yesterday at $28.83.